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Whitewater Limited is considering a project with the following projected free cash flows: 1 Year Cash Flow (in millions) 0 - $49.2 2 $20.9 3
Whitewater Limited is considering a project with the following projected free cash flows: 1 Year Cash Flow (in millions) 0 - $49.2 2 $20.9 3 $20.8 4 $15.5 $10.3 The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. Whitewater's WACC is 11.4%. Should it take on this project? Why or why not? The timeline for the project's cash flows is: (Select the best choice below.) OA. Cash flow (millions) $49.2 - $10.3 - $20.9 - $20.8 - $15.5 Year 0 1 2 3 4 OB. Cash flow (millions) - $49.2 $20.9 $20.8 $15.5 $10.3 + 1 Year 0 2 3 4 OC. Cash flow (millions) $49.2 $10.3 $20.9 $15.5 $20.8 + 3 Year 0 1 2 4 D. Cash flow (millions) - $49.2 - $20.8 - $15.5 - $10.3 + 1 - $20.9 + 2 Year 0 3 4 Click to select your answer and then click Check
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